Morgan Stanley plans to cut 1,600 jobs within its institutional securities business, or 6% of its headcount within the investment banking and trading unit and support staff, according to a person familiar with the situation.

The layoffs will focus more on senior employees, with half of the cuts coming in the US and half internationally, this person said.

The securities firm, the sixth largest US bank by assets, plans to inform affected employees now and over the course of the coming weeks, according to this person.

The cuts are the latest sign of Wall Street's retreat as banks are grappling with fearful markets, economic uncertainty and new regulations that have crimped revenue.

Last year, Morgan Stanley slashed its headcount by 6% and reported 57,726 employees as of September 30.

Shares of Morgan Stanley recently traded up 0.4% at $19.72. The stock has climbed 3.2% so far in 2013 and has risen 22% over the past 12 months.